Global Markets Digest German Recovery Signs, Mixed China Data, and Shifting US Tech Policy

Economic Outlook - The German Economy Ministry reports increasing signs of stability in the economic recovery, with indicators suggesting continued improvement at the start of 2026 [2][3] - China's January aggregate financing reached CNY 7.22 trillion, exceeding the estimated CNY 7.085 trillion, while the M2 money supply grew by 9.0% year-over-year, surpassing the expected 8.3% [4] - However, new yuan loans for January were CNY 4.71 trillion, falling short of the CNY 5.00 trillion forecast, indicating potential caution among businesses and consumers [5] Corporate Performance - L'Oréal's CEO stated that 2026 is "off to a strong start" in key markets such as the United States and mainland China [6] - Air China reported a 3% increase in passenger traffic for January, reflecting positive trends in the travel sector [6] - The technology and communication services sectors are leading this earnings season with beat rates of 95% and 100%, while healthcare and consumer discretionary sectors are struggling with negative blended growth [7] Geopolitical Developments - The Trump administration has paused planned bans on certain Chinese technology firms, which may ease immediate pressures on the tech supply chain [8] - In the UK, Labour leader Keir Starmer's team has shifted focus to a 20/80 split between foreign and domestic policy to address economic challenges [9]